Daily Market Highlights (03.04.2023)

Four equities pull the MSE Equity Price Index lower


The MSE Equity Price Index declined by 0.21% to 3,532.127 points as the declines in APS, BOV, Hili and PG outweighed the gains in the ordinary shares of RS2, GO, and MIA. Meanwhile, IHI and Malta Properties Company closed unchanged as total trading activity amounted to €0.26 million. Download today’s Equity Market Summary.

Most of today’s trading activity took place in the shares of APS Bank plc as the share price lost 3.2% to the €0.61 level on one trade of 322,595 shares having a market value of just under €0.20 million. Shareholders as at close of trading on 12 April 2023 are entitled to the net final dividend of €0.0174 per share which can be taken either in cash or in new ordinary shares at an attribution price of €0.57 per share

Also within the banking sector, Bank of Valletta plc dropped by 2.8% to the €0.87 level on three trades totalling 27,000 shares. Last Thursday, BOV published the 2022 annual results showing double-digit growth in net interest income as well as improvement in non-interest income. In aggregate, BOV’s total operating income increased by 20.8% (or +50.4 million) to €293.4 million. BOV’s performance was also boosted by lower operating costs and a net impairment reversal of €49.1 million. Meanwhile, the financial results were dented by the €103.0 million net litigation settlement charge related to the Deiulemar case. Overall, BOV reported a profit before tax of €48.7 million (2021: €80.7 million), while excluding the effect of the Deiulemar settlement, adjusted profit before tax amounted to €151.7 million. BOV’s net profit amounted to €31.2 million (2021: €56.2 million). BOV’s equity base expanded by 2.8% to €1.16 billion which translates into a net asset value of €1.983 per share (31 December 2021: €1.929 per share). The Directors of BOV elected not to recommend any interim or final dividends as despite the significant recovery in underlying profitability, the financial performance remained impacted by the cost of the Deiulemar settlement.

Two trades totalling 27,300 shares pulled down the share price of Hili Properties plc by 2.7% to the €0.22 level.

PG plc shed 0.5% to a one-month low of €1.96 as 2,075 shares exchanged hands.

Meanwhile, Malta International Airport plc advanced by 0.9% to the €5.70 level across seven deals totalling 2,118 shares. MIA shareholders as at close of trading tomorrow will be entitled to a final net dividend of €0.12 per share, subject to approval at the upcoming Annual General Meeting scheduled for 10 May 2023.

GO plc climbed 1.4% to the €2.84 level on trivial volumes. GO shareholders as at close of trading on Wednesday 5 April 2023 will be entitled to a final net dividend of €0.09 per share, subject to approval at the upcoming Annual General Meeting scheduled for 11 May 2023.

The ordinary shares of RS2 Software plc moved 3.6% higher to the €1.14 level across four trades totalling 8,000 shares after recovering from an intraday low of €1.09 (-0.9%).

International Hotel Investments plc closed unchanged at the €0.57 level on two trades totalling 5,755 shares. On Friday, International Hotel Investments plc announced that it  signed a Memorandum of Understanding (‘MoU’) with Saudi Arabia’s Jeddah Central Development Company (JCDC).  The MoU will establish a framework for Corinthia Hotels and its sister company QPM Limited, to develop and operate assets within the Marina District, which is part of the Jeddah Central 9.5 km waterfront on the Red Sea.

Malta Properties Company plc traded flat at the €0.43 level on three deals totalling 3,000 shares.

The RF MGS Index declined by 0.6% to 880.822 points as the yields across the eurozone increased following the decision announced on Sunday that several OPEC+ members agreed to cut oil production by over 1 million barrels as from May to the end of 2023. This decision lifted the price to the highest level in over a month and contrasts to the central banks’ actions across major economies to tame inflation. Meanwhile, preliminary Eurostat data published on Friday indicated that Eurozone inflation went down to 6.9% in March compared to 8.5% in the previous month. This steep decline is attributed to lower energy costs. In fact, core inflation, which excludes energy, food, alcohol and tobacco went up to an all-time high of 5.7% in March. Elsewhere, in the US data published on Friday showed that the personal consumption expenditure price index, an inflation measurement followed closely by the Fed, increased by a further 0.3% in February over the previous month, slightly below the forecasted figure of 0.4%.



This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.